Sunday, September 18, 2011

HAPPY MONDAY READERS!


What a great win for the Saints on Sunday! QB Brees was "on the money" and the defense looked sooooo much better than the game against Green Bay.

If you were not aware that the US Senate voted overwhelmingly, but a vote of 73 - 27 to let the $0.45/gallon refinery tax credit and the $0.54/gallon tariff on imported ethanol expire on December 31st of this year. The House is set to vote on it soon also, and it believed that it will kill the subsidy also. If you had not seen the announcement on this, I thought you might be interested in reading the following article:

Senate votes overwhelmingly to end ethanol subsidies

WASHINGTON • In the end, the defeat of ethanol subsidies in place since the 1970s was swift, forceful and bipartisan.


The Senate voted 73-27 this afternoon to end tax credits for ethanol that amount to about $6 billion annually. The vote to kill featured 33 Republicans, 38 Democrats and the Senate's two independents. Saving the subsidies drew little support outside the Midwest. Missouri has 6 operating ethanol plants; Illinois has 13 with another in the planning stages.


"The best way for ethanol to survive is to stand on its own two feet," argued Sen. Tom Coburn, R-Okla., who sponsored the Senate amendment along with Sen. Dianne Feinstein, D-Calif.

The vote eliminates the 45-cent per gallon tax credit for ethanol refiners along with the 54-cent per gallon tariff on imported alcohol fuel that was designed to keep out Brazilian sugarcane ethanol.


But ethanol supporters beat back a separate effort that would have prohibited taxpayer financing of new blender pumps -- additional pumps at filling stations offering different blends of ethanol fuels. It fell 19 votes short.

The National Corn Growers Association, which is based in Chesterfield, fought along with other farm groups and the ethanol industry to preserve the tax credit, which was due to expire at year's end.

"The oil companies have never given up their assault on ethanol and biofuels," asserted Sen. Tom Harkin, a Democrat from Iowa -- the nation's leading producer of corn and ethanol.


Senators from Missouri and Illinois voted along with their Midwestern colleagues against canceling the tax credit. They are promoting legislation aimed at shifting to a different tax incentive for ethanol that would be tied to the price of oil.

The subsidy has been around since the Energy Tax Act of 1978 gave ethanol a 40-cents per gallon tax exemption, increased to a high of 54-cents per gallon over the years.

The Renewable Fuels Association, which represents ethanol producers, said afterward that they were "disappointed in the shortsightedness of this vote, particularly as this same body voted less than one month ago to preserve billions of dollars in taxpayer handouts to the oil industry."


The Corn Growers put out a statement saying that the organization was severely disappointed that "politics trumped policy." But the St. Louis group's president Bart Schott, said he was pleased at defeat of the amendment that would have prevented the Agriculture Department from handing out grants for blender pumps.

Schott said that "blender pumps provide options for those with flex-fuel vehicles and can help the ethanol industry grow in the years to come."


Read more: http://www.stltoday.com/news/local/govt-and-politics/political-fix/article_120513fe-984d-11e0-8022-001a4bcf6878.html#ixzz1YMvh4qyg


Friday, September 16, 2011

HAPPY SATURDAY READERS!

Wishing everyone a great weekend and hope you enjoy the football games with your favorite teams.

For readers from the Shreveport area, I am sad to report that Al Carrolls Service Center at 1343 Captain Shreve Drive in Shreveport has converted to ethanol gas because he said their distributor could no longer get ethanol free gas. Since Marathon Oil has stopped selling ethanol free gas from their Garyville refinery June 21, I've had to remove 68 ethanol free stations from my website's list of ethanol free gas stations, most in north Louisiana. If a store has 3 tanks in the ground (which most older stores do), the cost to clean their tanks and dispose of the hazardous waste sludge, install electronic water monitoring equipment and expensive fuel filters on each pump to accomodate ethanol gas costs stations about $6,000 minimum. Multiply that by 68 stations, Marathon has inflicted over $400,000 in costs to all these small "Mom and Pop" stores that are struggling to survive! And why? For the $0.45/gallon tax credit most likely. They only had to blend 8% of their total gasoline sales this year, that's a mere 8 gallons out of every 100 gallons to meet the EPA regulation. It's just amazing what greed does, isn't it? And, the other major refiners are no better. It's just that Marathon was the last remaining large supplier of ethanol free gas to south and north Louisiana.

I am often asked by readers, what should I do to minimize the risk of problems to my marine engine if I cannot find ethanol free gas and must use ethanol gas. I developed the following article in 2009 to answer that question. I do hope it helps.......but, keep in mind, these precautions DO NOT eliminate the liklehood of engine damage, but only merely lowers the risk somewhat.

SUGGESTED PRECAUTIONS IF E-10 GAS MUST BE USED IN MARINE ENGINES

By "Pete" Landry

(December 17, 2009)

It is suggested that the following precautions be taken if you cannot find a source of ethanol-free gas and must use E-10 gasoline (DO NOT, under any circumstance use 15% ethanol gasoline in your marine engine when this new gas starts showing up at stations! It WILL DAMAGE your engine and void your warranty, and, according to the new EPA "E-15" label, is "against Federal law" to use this gas in marine engines) :

First, if you do not already have an in-line fuel filter between your fuel tank and your engine, it is strongly recommended that you install a 10-micron fuel filter with water-trapping capability. It should be installed in your fuel line before your engine, and at a location which is easily accessible for periodic change-out of the filter canister. These filters can be found at most boat dealers and Academy Sports + Outdoors, and other outdoor sports retailers. The filter cartridge (it looks like an auto oil filter) should be changed at least every 50 hours of engine use or at least annually, and perhaps more frequently if engine problems are experienced.

Secondly, it is strongly recommended that a fuel additive be used. I’ve researched at least four different fuel additives, and believe the “Sta-Bil” Marine Formula (blue color) is the better of the options available. This is because it has much higher levels of fuel stabilizer than others, and it also has a corrosion inhibitor that most other additives do not have. The blue Sta-Bil is sold at most Wal-Mart stores and some boat dealers. A 32-ounce bottle sells for about $19. 95 plus tax (2010 prices), but it only takes 1 ounce of additive to 10 gallons of gasoline. So a 32-ounce bottle will provide protection for 320 gallons of gas.

CAUTION: DO NOT use any fuel stabilizer that contains ethanol or any other type of alcohol as this only adds to the problem.

Part of the reason to use of a good fuel additive is not only to reduce the possibility of corrosion to your fuel tank, but also to stabilize the gasoline. Ethanol gasoline has a much shorter “shelf life” than gasoline without ethanol. The stable life of ethanol gasoline is only 2 - 3 months or less.

Lastly, keeping your boat's fuel tank full may reduce the amount of water that is introduced into the tank due to "breathing" since there is very little vapor space left in the tank when it is full. Of course, this has to be weighed against the poorer shelf life of ethanol gasoline if your boat is not used frequently.

Have a GREAT weekend readers! I do not post on Sundays, so I'll be back on Monday.

"Pete" Landry....................comments welcome at way2gopete@yahoo.com

Thursday, September 15, 2011

HAPPY FRIDAY READERS!


CONGRATULATIONS TO OUR LSU TIGERS FOR A GOOD WIN THURSDAY NIGHT! While not a spectacular offensive performance, they got the job done...........and what can you say about the defense! Road game next Saturday against West Virginia, on another national stage on ESPN 2. The boys in purple in gold are now 3 - 0!

For readers in Acadia Parish, sorry to report that the Point Degeglise store in Church Point had to switch to ethanol gas because their supplier could no longer get ethanol free gas.

Also, for readers in Vermillion Parish, also sad to report that the Maxi Mart - Conoco store in Abbeville also had to switch to ethanol gas, again because their distributor claims he could not get ethanol free gas. I spoke to the owner at length, and he is very angry about having to switch.

Here is an article I thought you would also interesting. It seems the fast food industry is also learning that using over half of corn grown in the Country to make ethanol is driving up food prices..........like most consumers were not already aware of this already?

Chain Restaurants Ask Congressional Supercommittee to End Ethanol Tax Credit and Tariff

WASHINGTON, Sep 15, 2011 (BUSINESS WIRE) -- The National Council of Chain Restaurants and 16 of its member companies today asked Congress' "supercommittee" to repeal a federal tax credit for corn-based ethanol producers and a related tariff on imported ethanol, saying the provisions drive up food prices for consumers and eliminating them could help reduce the deficit.

"Our interest in this issue is due to the high food commodity costs facing all consumers and all channels of the food service industry," NCCR and the companies said in a letter to members of the Joint Select Committee on Deficit Reduction. "Strong empirical evidence shows a direct link between U.S. policy to subsidize and support the corn ethanol industry and increased demand for corn, which is the dominant ingredient in livestock feed in the United States."

NCCR has long argued that the 45-cents-per-gallon Volumetric Ethanol Excise Tax Credit and a 54-cents-per-gallon tariff on imported ethanol encourage the use of U.S. corn for ethanol production while discouraging the importation of lower-cost ethanol that would help the United States meet its energy needs without diverting crops needed for food production. The use of corn for ethanol drives up the cost of a wide range of food, from corn itself to meat from corn-fed livestock.

"Chain restaurant companies are food retailers and as such the impacts of the current ethanol subsidies are acutely felt by restaurant operators in the form of higher wholesale and retail food prices," NCCR Executive Director Rob Green said. "The high level of industry participation on this letter is significant and demonstrates the breadth and depth of concern about this issue within the industry."

The letter was directed at the joint committee because the panel has been charged with finding ways to reduce the federal deficit by $1.5 trillion over the next 10 years. The tax credit costs the U.S. treasury about $6 billion a year and its repeal would contribute to the panel's goal in addition to being sound public policy.

The tax credit and tariff are scheduled to expire December 31, and the Senate voted in June to eliminate both. But the letter expressed concern that they might yet be renewed, or that supporters would seek to have them replaced with other subsidies.

The letter was signed by Arby's, Brinker International, Burger King, Carlson Restaurants Worldwide, CKE Restaurants, Cracker Barrel Old Country Store, Darden Restaurants, DineEquity, Domino's Pizza, Dunkin' Brands, International Dairy Queen, McDonald's, OSI Restaurant Partners, Wendy's, White Castle and Yum! Brands. In addition to the supercommittee, copies went to all members of the House and Senate.

In addition to today's letter, NCCR is a leading member of a coalition of food industry groups that sent a letter to the House Ways and Means Committee, House Energy and Commerce Committee and Senate Finance Committee earlier this week saying the tax credit should be repealed during the current "time of spiraling deficits." The coalition letter was signed by 104 organizations.

For more than 40 years, NCCR has worked to advance sound public policy that best serves the interests of restaurant businesses and the millions of people they employ. NCCR members include many of the country's most well-respected quick-serve and casual-dining companies. NCCR is a division of the National Retail Federation, the world's largest retail trade group. www.nccr.net

Have a great Friday!

"Pete"....................comments welcome: way2gopete@yahoo.com


Wednesday, September 14, 2011

HAPPY THURSDAY READERS

LSU plays their first SEC opponent Thursday night when they head to Starksville to play the Mississippi State Bulldogs. The game is nationally televised on ESPN at 7:00 pm Central.

GEAUX TIGERS! GEAUX TIGERS! GEAUX TIGERS!


In yesterday's blog, I published an article called "Why is Ethanol Gasoline Bad for Lawn and Garden Tools". I continue to get questions from readers as to why ethanol gasoline seems to be tolerated reasonably well in their car and truck (except for the 6-8% loss in gas mileage in highway driving and 10-12% around town), so why is it bad for marine engines.

Th following is an article which I originally published in December, 2009 and updated in May, 2011. It attempts to explain why ethanol gas is bad for marine engines:


Why is E-10 Gasoline Bad for Marine Engines?

By “Pete” Landry

(December 17, 2009 – Updated May 15, 2011)

The U.S. Congress enacted the “Energy Independence and Security Act” in 2007, mandating the increased use of “renewal fuels”. The premise behind this was to supposedly help reduce our dependence on foreign imported crude oil and provide for an oxygenate for cleaner burning and lowered exhaust emissions. The U.S. Environmental Protection Agency (EPA) issues mandates to oil refiners in the Country each spring listing how much of their total gasoline sales must be renewal fuels for that year. Ethanol, primarily manufactured from corn fermentation in the Midwest states, is currently the largest contributor to renewal fuels. In 2009, all refiners in the Country were required to sell 10.21% of their total gasoline sales as ethanol fuel. In 2010, the requirement was reduced to 8.25%. In 2011, it was reduced to 8.01%. Many U.S. Senators complained to the EPA that their constituents were complaining about the substantial increase in cost of all food products made from corn (bread, cereals, milk, meat, all dairy products, ice cream, etc). As a result, the EPA reduced the 2010 and 2011 quota for ethanol fuels. In addition to contributing to substantial cost increases in food products made from corn, the huge increase in farmlands and fertilizer required to grow corn for ethanol production has contributed to an ever increasing of the larger and larger “red algae” or “oxygen deficient hypoxia dead zone” in the Gulf of Mexico. LSU environmental scientists have been studying this red algae Gulf situation for years and warn that its continued growth threatens Gulf fisheries.

While ethanol gasoline appears to be tolerated satisfactorily in automobiles and trucks, except for 6-8% lower fuel economy, marine engines and gas powered yard and garden tools are an entirely different matter. Auto vehicles have sealed fuel tanks as required by EPA regulations to reduce gasoline emissions to the atmosphere. Boat fuel tanks, however, are almost always vented to atmosphere. Water is seldom found in vehicle fuel tanks unless it is pumped in from the gas station’s fuel tank. Boat tanks, however, almost always contain a water layer because it is vented to the atmosphere. The difference between daytime and night time temperatures causes the accumulation of water in the fuel tank. At night time, when the air temperature drops, the fuel tank takes in air to balance the tank pressure. With the air comes moisture, and high relative humidity in South Louisiana means lots of moisture enters the fuel tank.

This moisture forms droplets on the fuel-tank walls, and eventually these droplets fall to the bottom of the tank and form a lower water layer (water has a higher density – it’s heavier than gasoline, so the water appears as a lower layer in the fuel tank).

Water in the boat fuel tank presents a serious problem with ethanol gasoline. Ethanol is 100 percent soluble in water. It is “hygroscopic” and acts like a “water magnet.” So the ethanol in the gasoline will migrate into the water layer of the fuel tank. This creates several problems.

First, by losing ethanol in the gasoline, the octane of the gasoline will drop. Ethanol has a 113 octane rating. So, if there is enough water in the fuel tank, it is possible that all of the ethanol could migrate into the water layer, thus leaving the gas with a reduced octane rating of 83 to 84 instead or the original 87. Outboard engine manufacturers warn this lower-octane gasoline could damage the engine.

A second problem with ethanol gasoline is related to potential corrosion to aluminum fuel tanks. Since the ethanol/water layer is conductive, unlike gasoline, it can result in galvanic corrosion and also acidic corrosion and could damage aluminum fuel tanks, eventually causing them to leak. A leaking fuel tank could create a huge safety hazard as this could lead to a fire and/or explosion. Also, the ethanol/water layer is an ideal medium for algae and sludge to form. This could create plugging problem in fuel lines and engine carburetors and fuel injectors, potentially leading to very costly damage to the engine.

A third problem is potentially the most serious: Ethanol is perhaps the best solvent known to man. It will dissolve the gum/varnish film from gasoline which has accumulated on the walls of fuel tanks, fuel lines, etc., over the years. There is a greater risk of this if the boat sits idle for long periods of time. The ethanol could also attack certain types of fuel-line hose materials. These dissolved products will be fed into the engine and cause carburetor plugging and in fuel-injected 2-stroke and 4-stroke engines plug the injectors. Very serious engine damage could result. The resin in certain older types of fiberglass fuel tanks also could be dissolved by ethanol, causing them to leak. Older marine engines and yard and garden tools could also experience failure due to damage to rubber o-rings, seals and gaskets.

The shelf life of ethanol gasoline is also lower than pure gas. Problems can be experienced if the ethanol fuel is much older than 60 days. If you must use ethanol gas because you cannot find ethanol free gas, I recommend the use of a fuel stabilizer. I like the Marine formula "Sta-Bil" (blue color). I spoke with the Chief Chemist of Gold Eagle, the manufacturer of Sta-Bil and he told me that the marine formula has over five times more stabilizer than their "red Sta-Bil" due to the shorter shelf life of ethanol gas. It also contains a corrosion inhibitor, which very few fuel additives have. And, a 10 micron water trapping filter in the fuel line before the engine is critical.

Two marine engine repair shops who have been in business for over 110 years have indicated that ethanol gasoline has been their “worst nightmare”. They both indicate the frequency of repairs to marine engines since the introduction of ethanol fuels has skyrocketed. Shops that repair gas powered yard and garden tools also indicate the same experience.

Louisiana is one of many states across the Country that has a law which requires gas station owners to post a decal on fuel pumps that reads “Contains up to 10% Ethanol” (or equivalent wording) on each dispenser that sells ethanol fuels. Failure to post the labels if the station sells ethanol gasoline can result in large fines for the station owners (up to $500/pump/day).

And, the problems with ethanol gasoline is also about to get much worse. In March, 2009, Growth Energy, a lobby group for a large number of ethanol manufacturing plants in the Midwest petitioned the EPA to increase the amount of ethanol in motor fuels from 10% to 15%. The EPA approved their request in December, 2010 and January, 2011. In their announcement, the EPA WARNED that “E-15” CANNOT be used in any of the following gasoline powered equipment:

Cars and light trucks model year 2000 and older, school buses and delivery vans, motorcycles, marine engines, 4 wheelers, jet skis, chain saws and all gas powered lawn and garden tools (gasoline powered home generators cannot operate on E-15 either).

When “E-15” makes it to service stations is questionable however. At least eight different organizations have filed lawsuits against the EPA claiming they don’t have statutory authority to issue “limited approval” of this fuel. The major concern is “misfueling”, which means using E-15 in equipment that it is NOT supposed to be used for and causing equipment damage. It would likely be cheaper than E-10 fuel and users may be tempted to put into equipment that it is not supposed to be used for even though the fuel pump will most likely have warning labels.

There is not one outboard marine engine manufactured or sold in the Country which can operate on 15% ethanol gasoline. Neither can any gas powered yard and garden tools. Marine engine manufacturers all warn owners “use of gasoline with an ethanol concentration greater than 10% will result in serious damage to the engine and void the warranty”. Boat owners will be searching for ethanol free gas stations if and when 15% ethanol is introduced into the market.

There are many cities in Louisiana which do not have any ethanol free gas stations. Most “major oil refiners”, including Exxon/Mobil, Shell, Chevron/Texaco, Citgo, Marathon and BP have chosen to sell almost 100% of their gasoline as ethanol fuel even though the EPA only requires them to sell 8.01% in 2011. This may be due to the fact that they are given a $0.45/gallon tax credit to blend ethanol fuels. To sell ethanol gas requires significant expenses on the part of the gas station or convenience or grocery store. Before ethanol gas can be put into station tanks, the fuel tanks must be emptied and cleaned, the sludge must be disposed of (as hazardous waste - expensive), new electronic water detection and measuring devices must be installed and new, expensive fuel filters must be installed on each fuel pump. These costs can run from $1,500 to over $2,500 per tank, depending on the size of the tank. That is why you tend to see most of the ethanol FREE fuel stations at the small, independently owned gas station and convenience/grocery stores.

Many gas station owners are erroneously being told by their gas suppliers that they are required to sell ethanol gas. That is NOT correct. There is NO Federal or Louisiana State law that requires gas outlets to sell ethanol gasoline. The gas station suppliers tend to “encourage” (or push) stations to sell ethanol gas because they get a larger tax credit the more ethanol gas they sell.

The ethanol manufacturing plants are being subsidized by US taxpayers to produce ethanol. If it were not for this huge subsidy, they could not make a profit as it costs more to produce a gallon of ethanol than a gallon of pure gasoline. These subsidies also include gasoline refining companies getting a tax credit of $0.45/gallon to blend ethanol gasoline (refinery tax credits alone amounted to $5 Billon in 2010), gas distributors get a tax credit and gas stations get a 4.5 cent/gallon or more tax credit for selling ethanol gasoline. There is also a Federal tariff of $0.54/gallon on any imported ethanol to protect US ethanol manufacturing plant. Many independent gas stations have remained “ethanol free” due to the large cost to clean their fuel tanks and add water sensing electronics and filters to convert to sell ethanol gas as I mentioned above.

These ethanol subsidies were due to expire at the end of 2010. However, they were extended for another year as part of the “Bush Tax Cut extension” passed by Congress in late 2010. The subsidies are now set to expire on December 31, 2011, UNLESS extended by the US Congress and Senate. The US Senate voted overwhelmingly in July 2011 not to extend the tax credits. The US House is due to vote on it soon.

Anyone having questions about ethanol fuels can contact Landry at way2gopete@yahoo.com




Tuesday, September 13, 2011

HAPPY WEDNESDAY READERS!


I am continually asked why ethanol gasoline is bad for marine engines and lawn and garden tools. It seems to work OK in cars and light trucks, except for the 6-8+% loss in mileage. So, today, I'll post an article which I developed earlier this year. I interviewed the owner of a lawn and garden tool repair shop in LaPlace. Mr. Ladner has been in this business for over 20+ years. I wrote this article based on my interview with him, and let him review the final article draft for accuracy. Today I'll post the problems lawn and garden tools have with ethanol gas, and tomorrow, I'll post the one for marine engines:


WHY IS ETHANOL GASOLINE BAD FOR GAS POWERED LAWN AND GARDEN TOOLS?
By “Pete” Landry (March 31, 2011)

Some homeowners are learning the hard and expensive way about the problems that ethanol
gasoline is causing their gas powered lawn and garden tools. But, many have still not yet
discovered this, or just don’t believe the cause for these problems.

I interviewed Mr. James Ladner, owner of Ladner’s Lawnmower Repair (799 W 5th Street, LaPlace, LA 70068, Phone-985.359.2533) today to get a better insight of what types of problems he is discovering when he repairs customer’s lawnmowers, weed eaters, blowers, chainsaws, etc. Mr. Ladner has been in the business of repairing gas powered lawn and garden tools for over 23 years.

He cites the most common problems he sees were rarely experienced with non ethanol gas. He
indicates that ethanol gas is causing plastic fuel lines to become brittle and crack. The primer squeeze bulbs are also being attacked, in come cases causing them to leak gasoline when
squeezed. Carburetor diaphragms are also being attacked by the ethanol. Even though most
lawn and garden tool manufacturers claim newer engines can safely use ethanol gasoline, he
indicates he is seeing these failures in new equipment, not only older equipment. In older
equipment that has been in use for many years, the ethanol is dissolving the gum and varnish film that has deposited in the fuel tank, fuel lines and carburetor from years of use (because these tools sit up for months after the summer grass cutting season) and sending this into the engine’s carburetor, causing it to plug. As I explained in several articles on this “Ethanol Articles” page, ethanol is possibly the best solvent known to man. It easily dissolves the gum and varnish film on the fuel tank, fuel lines and carburetor that has deposited over years of use.

Cars and trucks are mostly void of this problem because the fuel is replaced so often that it does not have time to become “stale” and deposit gum and varnish like infrequently used lawn and garden tools. Whenever Mr. Ladner sees damage he has learned from experience appears to be from the use of ethanol gasoline, when the customer returns to his shop to pick up the repaired tool, he asks them if they have been using ethanol gasoline in their equipment’s engine. In nearly all cases, the customer confirms that he has in fact been using ethanol gasoline in the engine. Mr. Ladner then explains the cause of the engine damage caused by ethanol gas and urges them not to use ethanol gasoline in lawn and garden gas powered equipment and gives them a list of stations in the LaPlace area that sell ethanol free gas. Some apparently don’t believe him, continue to use ethanol gas and return a few months later with the same problems.

While the cost of repairing these gas powered tools is expensive enough, several brands of newer gas powered small engine weed eaters and blowers in particular have sealed carburetors which cannot be opened to clean. The entire carburetor has to be replaced. Mr. Ladner indicates the cost for a new carburetor for most of these small engines costs approximately $90-$100. Add to that the labor cost of about $40/hour and the new weed eater or blower the customer just purchased for around $150 has to pay near the purchase price to have it repaired, all because he used ethanol gasoline!

Another recommendation Mr. Ladner gives his customers, before starting to use gas powered tools in the spring, discard gas in your gas can left over from the prior year and put fresh gas in the tools fuel tank. It starts faster and runs better. I also recommend to people to buy a little insurance and put a fuel stabilizer in the fuel can. I like the “Sta-Bil” (red formula) fuel stabilizer…..it significantly extends the shelf life of gasoline. It can be purchased at auto parts shops and some retail stores.

In summary, while many manufacturers indicate their lawn and garden engines will “tolerate”
ethanol gas, many, many problems are being experienced by its use. Mr Ladner has for years
maintained a staff of 3 repair technicians to help him keep a reasonable turn around time on
repairs. However, he has had to add 2 more technicians to his staff since the introduction of
ethanol gasoline because of the increased work load.

One last caution – you may have seen from other articles on this page that the Federal
Environmental Protection Agency (EPA) has announced the approval of 15% ethanol gasoline, a
50% increase over the current 10% ethanol fuel. To my knowledge, it has not yet showed up at
retail gas stations in Louisiana, and it may be some time before it does. Approximately eight
different organizations have filed suit against the EPA because they claim the EPA does not have
statutory authority to issue a “partial approval” for this fuel. In the EPA’s announcement, they
specifically warn that 15% ethanol gasoline MUST NOT be used in cars and light trucks older
than 2001 models and also MUST NOT be used in marine engines, motorcycles, four
wheelers, jet skis, chain saws, gas powered home generators and all gas powered lawn and garden tools. In another article on this page I indicate that I have researched lawn and garden gas powered engine manufacturers Briggs and Stratton, John Deere, Tecumseh and Kohler. Each of these engine manufacturers clearly warn customers that “under no circumstance should gasoline with greater than 10% ethanol be used in their engines as it will cause engine failure and their warranty will be voided.

PS: An update on 15% ethanol gas. The EPA just recently approved the "E-15" gasoline label to be affixed to gas pumps when this new gas shows up in stations, so it is likely that this new gas may start showing up in stations this fall and into 2012. I'll post an article on the hazards of E-15 in another blog.

"Pete".........comments welcome: way2gopete@yahoo.com

Monday, September 12, 2011

HAPPY TUESDAY READERS!


Readers from the Jonesboro area in Jackson Parish, I received an e-mail today from a customer that Woolys One Stop - Conoco at 1799 South Hudson Avenue has converted to ethanol gas. The stations tanks and pumps are owned by McCartney Oil. I spoke with them and confirmed the report. McCartney told me that since they can no longer get ethanol free gas from the Arcadia Terminal (because Marathon Oil stopped selling ethanol free gas in late June) they had to make the switch. That now makes a total of 65 stations, grocery and convenience stores that have converted to ethanol gas since Marathon stopped selling ethanol free gas. I really believe they will regret their decision.

I posted a new link on my website's "Links" page. It is under the section titled "Other Links of Interest". The website is called "Etha-Test". It's a website operated by a reader in Covington. He sells ethanol gas test kits. The kit price is $8.95.......that's a pretty good price. His website address is: http://www.bidlist.org/Etha-Test/
Check it out!

Thought you might be interested in reading this article about corn prices and ethanol costs escalating.......may make it much more difficult economics for refineries to blend so much of their gasoline as ethanol gas when they lose their "golden goose" $0.45/gallon tax credit next year!
As you read this, keep in mind that before the Feds began pushing ethanol gas, corn was selling for about $1.75/bushel. Note the current price towards the end of the article. Is it any wonder why all food products made from corn has skyrocketed in price over the past 3 years or so?

Ethanol Increases as Government Reduces Corn Supply Projection

QBy Mario Parker - Sep 12, 2011 3:06 PM CT

Ethanol futures increased in Chicago after the U.S. government reduced its outlook for the nation’s corn supply, threatening higher production costs for the biofuel.

Futures gained after the Agriculture Department said corn production will total 12.497 billion bushels (317.4 million metric tons), less than the 12.914 billion forecast in August. The grain is used to manufacture ethanol in the U.S.


“Ethanol’s higher and that definitely has something to do with corn,” said Jim Damask, a manager at BiofuelsConnect, a Jupiter, Florida-based alternative energy broker. “Ethanol is up just because the feedstock’s up. Corn stocks are pretty tight.”


Denatured ethanol for October delivery advanced 1.7 cents, or 0.6 percent, to $2.781 a gallon on the Chicago Board of Trade, the highest price since Sept. 7. Futures have gained 41 percent in the past year.

In cash market trading, ethanol in the U.S. Gulf was unchanged at $2.925 a gallon and on the West Coast the additive jumped 4.5 cents, or 1.5 percent, to $3.01, according to data compiled by Bloomberg.

Ethanol in New York added 3 cents, or 1 percent, to $2.95 a gallon and in Chicago the biofuel rose 2 cents, or 0.7 percent, to $2.825.


Corn for December delivery climbed 9 cents, or 1.2 percent, to $7.455 a bushel in Chicago. One bushel makes at least 2.75 gallons of ethanol.


"Pete" Comments are welcome at way2gopete@yahoo.com


Sunday, September 11, 2011

HAPPY MONDAY READERS!

I do hope that everyone enjoyed the weekend, the beautiful weather we've been having and all the College football games this weekend.

A reader e-mailed me today that two stations in Lincoln Parish have converted to ethanol gas. One is the Raceway at 1804 Farmerville Hwy in Ruston and the second is Cranfords Northside at 2893 LA Hwy 33 in Ruston also. That now makes 64 stations I've had to take off my website's list of Ethanol Free Gas List since Marathon Oil in Garyville stopped selling ethanol free gas on June 21st. Marathon was the largest remaining supplier of ethanol free gas to south and particularly north Louisiana before they abandoned their customers and like the other majors, started selling only ethanol gas. I've heard that several distributors in turn abandoned Marathon due to their refusal to sell ethanol free gas. I've heard that they said that they could get ethanol gas at many other refineries and no longer had to stick with Marathon as they did in the past to get ethanol free gas. I've also heard that as a result of this, Marathon's Louisiana gasoline sales plummeted in July, the month after they stopped selling ethanol free gas. Hopefully they will learn from their mistake............but I doubt it. It's usually greed for the $0.45/gallon VEETC tax credit that drives them to sell all their gas as ethanol gas. It will be interesting to see what the "major" refiners do in 2012 since it appears they will lose their "gravy train" tax credit. The US Senate has already voted overwhelmingly not to extend it past the current December 31st expiration date, and my US Congressman from my district tells me the House will also vote on this soon, and he predicts, like the Senate, they too will vote to kill the tax credit subsidy to refineries.

Today, I'd like to offer a suggestion to gas stations, convenience and grocery stores that sell only ethanol free gas. Readers, if you know of a station that indicates to you that they are thinking of converting to sell ethanol gas because they can't compete financially with stations selling ethanol gas in their area, offer this alternative to them.

Most of the stations that are currently selling ethanol free gas are older "Mom and Pop" stations, grocery and convenience stores. Most have older pumps that are not capable of blending mid grade gas in the pump like newer stations. Therefore, most have 3 tanks in the ground - one for regular (87 octane), another for mid grade (89 octane) and a third for premium (91 octane). In most cases, the plumbing of these older stations tanks have valves that enable isolating one tank from the other two and lining it up to feed one pump or bank of pumps. By doing this, the station owner can elect to put his smallest tank into regular ethanol free gas and label the pump or set of pumps as "NO ETHANOL or ETHANOL FREE" and then sell regular and premium ethanol gas in his other two tanks, and of course, label them "Contains Up to 10% Ethanol".

I have about several stations on my list that have done this very arrangement, and all have reported huge increases in sales. This way, they can compete with the other stations selling ethanol gas (and often "out price them") and also keep their ethanol free gas customers. I suggested this arrangement to one store owner in Ascension Parish when he dropped his contract with a "major" refiner, which allowed him to sell ONLY ethanol gas. His contract with the "major" expired at the end of 2010, and he went independent. He told me in June of this year that his sales have gone from about 40,000 gals/ month when he was with the major refiner to over 100,000 gals/month since going independent with this tank arrangement, allowing him to sell ethanol gas and also keep his ethanol free gas customers.

So, if you are friends with a store owner who is selling ethanol FREE gas only, and who may be struggling to compete with other stores in his area that are selling ethanol gas, you may want to suggest this tank arrangement to him, provided of course, that he has 3 tanks.

Let me know if you know of any station owners that have gone to this arrangement. I show them as selling both ethanol free and ethanol on my website's "Ethanol Free Gas Station List".

Comments welcome............way2gopete@yahoo.com

"Pete"